§ 97-12Eligibility established; limit.
§ 97-14Exemption granted; definition.
§ 97-15Amount of exemption; term.
§ 97-16Requirements for obtaining exemption.
§ 97-17Cessation of exemption.
§ 97-19Copy to be filed.
§ 97-20When effective.
In accordance with § 421-f of the New York State Real Property Tax Law, improvements to one- and two-family houses resulting in changes in the assessed valuation of at least $3,000 shall be, upon application, eligible for an exemption of Town of Potsdam property taxes per the terms of this article, such abatement not to exceed $50,000.
The intent of this article is to encourage property owners to make improvements to one- and two-family houses to improve the quality of housing in the community and to preserve and expand the tax base of the Town of Potsdam.
The improvements to residential buildings reconstructed, altered or improved subsequent to the effective date of this article for residential purposes shall be exempt from taxation to the extent provided hereinafter. For the purposes of the article, a "residential building" shall mean any building or structure designed and occupied exclusively for residential purposes by not more than two families.
The improvements to such buildings shall be exempt for a period of one year to the extent of 100% of the increase in assessed value thereof attributable to such reconstruction, alteration or improvement and for an additional period of seven years; provided, however, that the extent of such exemption shall be decreased by 12 1/2% of the initial exemption each year during such additional period; and provided, further, that such exemption shall be limited to $50,000 in increased market value of the property attributable to such reconstruction, alteration or improvement, and any increase in market value greater than such amount shall not be eligible for the exemption pursuant to this section. For the purposes of this section, the market value of the reconstruction, alteration or improvement shall be equal to the increased assessed value attributable to such reconstruction, alteration or improvement divided by the most recently established state equalization rate.
The requirements for obtaining exemption are as follows:
Such reconstruction, alteration or improvement must be commenced subsequent to the effective date of this article.
The value of such reconstruction, alteration or improvement must exceed $3,000. The maximum exemption permitted under this article is $50,000. For the purpose of this section, the terms "reconstruction," "alteration" and "improvements" shall not include ordinary maintenance and repairs. However, the value of the relocation or improvement of a septic system when such relocation or upgrade of a septic system is required as a condition of or as a precedent to obtaining a permit pursuant to other provisions of this Code may be considered. Swimming pools shall not be considered to constitute an alteration or improvement for the purpose of this article.
The greater portion, as so determined by square footage, of the buildings reconstructed, altered or improved must be at least five years old.
The owner of such building must make application on the form prescribed by the state board on or before the taxable status date. A certificate of compliance or a certificate of occupancy issued in connection with the reconstruction, alteration or improvement must be submitted with the application.
If the Assessor is satisfied that an applicant is entitled to an exemption under the provisions of this article, the Assessor shall approve the application, and such building shall thereafter be exempt from taxation and special ad valorem levies as herein provided commencing with the next assessment roll. The assessed value of any exemption granted pursuant to this section shall be entered by the Assessor on the portion of the assessment roll provided for the property exempt from taxation.
An exemption granted pursuant to this article shall cease in the event that a building granted an exemption ceases to be used primarily for residential purposes or in the event that title thereto is transferred to other than the heirs or distributees of the owner. Properties currently receiving an exemption or abatement under other sections of the Real Property Tax Law (such as § 485-e) shall continue under the previous exemption or abatement.
If any section or subsection, paragraph, clause, phrase or provision of this article shall be adjudged invalid or held unconstitutional by any court of competent jurisdiction, such adjudication shall not affect the validity of this law as a whole or any part thereof other than the part or provision so adjudged to be invalid or unconstitutional.
The Town Clerk is hereby instructed to file a certified copy of this article with the State Board of Equalization and Assessment.
This article shall take effect upon filing with the Secretary of State pursuant to the Municipal Home Rule Law. However, the implementation of this article will not go into effect until after the next taxable status date, and the establishment of the property tax roll.